Tokenized SanDisk Bets Outrank XRP in $800 Million Liquidation Event
Market wipeout hits $800 million as chip stocks slide
Crypto exchanges liquidated approximately $803 million in leveraged positions over a 24-hour period. A sharp decline in Asian semiconductor stocks triggered the move, which saw Bitcoin, the largest digital currency, briefly fall below $81,000 before recovering. A liquidation occurs when an exchange forcibly closes a trader's borrowed position because their losses have exceeded the value of their collateral.
The selloff was particularly heavy for traders betting on price increases. Bullish bets, known as longs, accounted for $694 million, or 86% of the total losses. This massive clearing of leverage happened as South Korea’s KOSPI index fell more than 6% during early Asian trading hours.
Key details of the market liquidation
- Bitcoin led the losses with $181 million in liquidations, followed by Ethereum at $178 million.
- Tokenized bets on SanDisk (SNDK) reached $19.09 million in liquidations, surpassing the $18.78 million seen in XRP.
- Binance accounted for 50% of all liquidations, including a single $9.65 million Bitcoin long position.
- Other chip-related assets, including SK Hynix, Micron, and the triple-leveraged SOXL semiconductor ETF, also saw significant liquidations.
Semiconductor rout fuels crypto platform losses
The losses in tokenized stock contracts lined up with a major selloff in Seoul. Shares of Samsung Electronics and SK Hynix each dropped about 8% due to concerns over artificial intelligence (AI) valuations and competition from Chinese manufacturers. Traders used perpetual futures—contracts that allow betting on a stock’s price around the clock without an expiration date—to gain exposure to these companies through crypto exchanges.
While most assets fell, oil contracts behaved differently. Short bets, or wagers that prices would fall, made up the majority of liquidations for WTI and Brent crude as prices remained steady near $106.
Confirmed data from the trading session
Market data shows that $595 million, nearly three-quarters of the total daily liquidations, occurred within a single 12-hour window. As Bitcoin dropped to roughly $81,700, large positions were closed automatically by exchanges to manage risk. The high volume of liquidations in SanDisk futures highlights the growing amount of leverage on crypto venues now tied to semiconductor stocks rather than traditional digital assets.
Why this shift in trading matters
The event demonstrates how crypto exchanges are increasingly serving as venues for high-leverage trading on traditional equity markets. The fact that SanDisk liquidations outranked those of XRP, a major cryptocurrency, suggests that crypto traders are heavily exposed to the volatility of the global chip industry. This link creates a scenario where a downturn in traditional tech stocks can directly impact crypto market liquidity.
Bitcoin recovery and upcoming economic data
Following the initial wipeout, Bitcoin price trends reversed, climbing back above $83,000. This recovery led to $59 million in short-seller liquidations over a four-hour period. With much of the long leverage now cleared out, the market is turning its attention to the upcoming Thursday U.S. inflation report for further direction.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.